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Policy Brief: Ethiopia Risk Sensitive Budget Review

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Policy Brief

In January 2021, the UNDRR produced the Risk Sensitive Budget Review of Ethiopia. This is part of a series of studies on disaster risk reduction investments across sub-Saharan African countries.

In compliance with target F and Additional Target 2 and Additional Target 3, the report provides information on the estimated amount of national DRR and CCA expenditures from both internal and external sources. Employing a risk-sensitive budget review (RSBR) methodology, the review tags domestic resources, allocated both directly and indirectly, and international finances such as ODA and other official flows towards DRR and CCA. Such a review guides resource-allocation decisions and, where information on investment costs is available, allows to identify financing gaps.

UNDRR will use the key findings of this study and recommendations to support the DRMC of Ethiopia to track and advocate for better-targeted investments towards DRR. Specifically, the key findings and recommendations from the report can be used for the following purposes:

  1. Raise awareness and understanding of DRR/CCA resource allocations in Ethiopia.
    In addition to strengthening planning and budgeting in line ministries, this study gives visibility to DRR/CCA actions for improved transparency and accountability.

  2. Provide a baseline for the institutionalisation of a tracking system for DRR and CCA expenditures. The methodology in the report (see Annex II) can be used by the NDMC,
    Ministry of Finance and DRR lead sectors to identify, classify, assign weights, and track annual planned and actual spending on disaster risk and climate adaptation.

  3. Mobilise resources for DRR/CCA. The key findings provide evidence on investments in DRR and CCA, which could serve as the basis for estimating the funding gap. The key findings will inform engagement with the National Planning and Development Commission/ Ministry of Finance, development partners to support broader resource mobilisation.

  4. Improve monitoring and reporting of DRR/CCA policy and progress. The methodology used to produce this report can be used, or even further refined, by the DRR community to monitor progress in DRM resource allocation.

  5. Improve programming by development partners. The key findings on investment by hazard type, DRM phase focus and mode of aid delivery by channel external In addition, by providing an analysis of major official development assistance for DRR and CCA, it will also help development partners and aid agencies with programming and project designs.